farmlands annual report 2013

Annual Report

Farmlands 2013

2 Farmlands Annual Report 2013

05Notice of Annual General Meeting

Notice is hereby given that the fiftieth Annual General Meeting

of shareholders of Farmlands Co-operative Society Limited

will be held at 3pm on Tuesday 5th November 2013,

at Club Mount Maunganui, Tauranga.

Shareholders are invited to join the Directors and Executive personnel of the Society for cocktails at the conclusion of the meeting. At this function, shareholders will be

entered into a complimentary sweepstake in the Melbourne Cup that will run at 5.00pm. The shareholder who wins the sweepstake will receive a trip for two

to Melbourne including six nights accommodation*. The prize includes transfers, a show and a meal on the Colonial Tram, value $3,300.

We look forward to your attendance at our Annual General Meeting.

Please RSVP by Friday 25th October to [email protected] or 0800 278 583.

November

Business

1. To receive and adopt the Annual Report for the year ended 30th June 2013.

Resolution to be put: That the Annual Report for the year ended 30th June 2013 be adopted.

2. To appoint the auditors.

Resolution to be put: That the auditors, PricewaterhouseCoopers, continue in office and that the directors be authorised to fix their remuneration.

3. To transact any other business that may be properly considered at the Annual General Meeting.

By order of the boardStephen Higgs, SecretaryChristchurch 26 September 2013

S H A R E H O L D E R S W E E P S T A K E

* Terms and conditions apply

Farmlands Annual Report 2013 3

Contents

Notice of Annual General Meeting 02

Chairman and Chief Executive Officer’s Report 04

Summary Financial Statements 06

Independent Auditors’ Report on Summary Financial Statements 08

Governance and the Board of Directors 09

Board of Directors 10

Divisional Review 12

While the big news for the financial year

has been the merger of two prominent

co-operatives, the work behind

the scenes shows a united team,

passionate about providing the best

services and prices for its shareholders.

Aware of the combined services and buying power

available, shareholders’ loyalty and acceptance is being

rewarded. As the shareholders are the only reason

this co-operative exists, it is important to ensure the

performance of your business is as strong as possible

– it directly affects ours.

We recognise the value of local service in an

environment that is becoming increasingly global in

focus. With a shared vision, we will continue to provide

locally, for locals.


Chairman and Chief Executive Officer’s Report

The 2013 year has been a significant one in the history of Farmlands

and CRT, with the shareholders of the two co-operatives voting to

merge the businesses, effective from the 1st of March this year. This

begins a whole new chapter in the evolution of the farmer owned rural

supply co-operatives.

Farmlands and CRT each have 50 years

of history, growing from small regional

entities to strong North and South Island

businesses. Your new national co-operative

now enters its second half century well

positioned, with the scale required to

deliver increased value to shareholders.

operate more efficiently and deliver more

innovation in our service to shareholders.

These advantages will be achieved in

the background – and the pursuit of these

goals will not disrupt the commitment to

excellent service given by our staff through

our network of 80 branches and associated

The rural supplies market is now fiercely

price competitive, thanks largely to the

successful role the co-operatives had in

challenging and changing the traditional

rural supplies model. Low gross margins

are now the reality of the rural supplies

market and the co-operative requires scale

and innovation for it to continue to exert

competitive pressure in the future.

The merged business will buy better,

services. We know the importance of the

relationship between our shareholders

and our staff and in a market that is

very price competitive, the importance

that is placed on knowledge and trust

in those relationships. We would like to

acknowledge the excellent performance of

our staff throughout the merger process, as

they have continued to deliver business as

usual through this change.

Lachie Johnstone Chairman

Brent Esler Chief Executive Officer

The merged business will buy better, operate more efficiently and

deliver more innovation in our service to shareholders.”

“

Christchurch office is re-branded Farmlands A meeting of the Farmlands Board of Directors

$2.17billion

$74.69million

$222.56million

Increase of 3%

Increase of 6.7%

Increase of 6.2%


Operational efficiencies and some

changes in the mix of business assisted

in lifting gross profit by 6.2 percent during

this period.

Merger benefits achieved to date are

exceeding our expectations in most

areas and overall the expenses of merging

are in line with our forecast, albeit some

have been incurred earlier than the original

plan, as operational and integration

priorities shift.

The fuel business rebranding

commenced on 1st July, with the

Farmlands Fuel brand being adopted.

The Skeltons brand was changed in

favour of Farmlands Horticulture and

this was introduced to the Tasman and

Marlborough regions. Retail stores in that

area will be amongst the first in the South

Island to receive the Farmlands brand.

Considerable progress has been made

by our Information Technology team in

planning the integration of the back

office systems and the move to a single

systems platform. A common branded

card is expected to be launched early in

the second quarter of 2014.

Since balance date, we have enjoyed

increased strength in sales and the new

financial year has started soundly. The co-

operative is now finalising the acquisition

of the animal nutrition business and

brand of NRM, returning this 114 year old

brand to New Zealand farmer ownership.

The purchase will improve the utilisation

and operational efficiency of our current

manufacturing assets and it will deliver

benefits to a wide range of shareholders.

The Board have decided not to make

any bonus distribution relating to the

30th June result. On 28th February at the

time of merging, a total of $39.7 million

was distributed, comprised of a bonus

issue of $31.6 million and a bonus rebate

of $8.1 million.

We appreciate the support of our

shareholders through the changes

subsequent to merging. We are very

focussed on maximising the opportunity

presented by the merger whilst preventing

any negative impact on shareholders, our

staff and our trading partners. There will

inevitably be difficult decisions to face

through the process as we are committed

to achieving the maximum benefit for

all of our shareholders. Mistakes are

always possible but we are committed

to minimising these and we will quickly

resolve any that may occur. We are

confident that with your support we

can deliver well beyond the merger

benefits projected.

We are proud to present this first annual

report of Farmlands Co-operative Society

Limited. Due to merging, this first year’s

accounts make it difficult to compare with

the previous year’s performance.

The accounts reflect 15 months trading

of the CRT business, 1st April 2012 –

30th June 2013 and four months trading

of the legacy Farmlands business from

1st March 2013 – 30th June 2013. The last

year comparative figures in the accounts

are just those of CRT for the 12 months

ended 31st March 2012, the date of the

last annual report.

The 1st of July 2013 marks the

beginning of reporting as a fully merged

entity. During this transition we have

monitored and managed the business

performance based on a rolling 12

months of the combined business results:

In the 12 months ended 30th June 2013,

we grew total turnover by 3.0 percent. This

result reflects the more subdued market

conditions of the year, in comparison with

last year’s record performance.

Brent Esler addresses shareholders and staff at the Feilding branch opening

Lachie Johnstone Chairman

Brent Esler Chief Executive Officer

Total Turnover

Total Monthly Rebates

Gross Profit (before monthly rebates)


Summary Financial Statements

Summary Statement of Comprehensive Income For the Period Ended 30th June 2013

HOW THE DOLLARS WERE MADE AND SPENT Group 2013

15 months to 30th June $000

Group 2012 12 months to 31st March

$000

Turnover 1,924,781 1,292,097

Revenue 1,746,187 1,190,020

Cost of Goods Sold (1,569,480) (1,079,181)

Gross Profit 176,707 110,839

Plus Other Income 2,703 1,549

Less paid to suppliers for goods and costs to run the Society (119,849) (74,071)

Interest paid to the bank (1,931) (899)

Monthly rebates to Cardholders (45,718) (24,269)

PROFIT FROM OPERATING ACTIVITIES 11,912 13,149

Less distribution to members:

Bonus Rebate paid (current period) (5,356) -

Bonus Rebate paid (prior year bonus) (62) (65)

Bonus Rebate owing to shareholders - (9,750)

Profit after distribution to members 6,494 3,334

Less income tax expense (2,606) (937)

Profit left in our Society 3,888 2,397

Summary Statement of Financial Position As at 30th June 2013

THE VALUE OF OUR SOCIETY Group 2013

30th June $000

Group 2012 31st March

$000

Current assets:

Stock held at retail branches, grain and seed, stock feed 85,529 33,398

Money owed to us by customers and income tax refundable 172,632 148,785

Land and buildings held for sale 1,295 950

Investments 150 150

259,606 183,283

Non-current assets:

Land, buildings, vehicles, fixtures and plant 60,075 23,261

Investments 51 55

Computer software and goodwill paid 14,011 8,993

Money owed to us by our customers 668 277

Income tax receivable in future years 1,083 638

75,888 33,224

Total assets - the things we own 335,494 216,507

Current liabilities - take away what we owe:

Money we owe to the bank (net of cash held) 63,650 21,402

Money we owe to our suppliers and employees 150,018 121,648

Money we owe Inland Revenue for GST and income tax 8,235 9,406

Money we owe for bonus rebate payable in cash - 4,915

221,903 157,371

Non-current liabilities:

Money we owe our employees 386 263

Total Liabilities other than share capital repayable on demand 222,289 157,634

This leaves the total members’ interests of our Society at 113,205 58,873


The Board of Directors of Farmlands Co-operative Society Limited authorised this summary of the financial statements on 26th September 2013.

Summary Statement of Changes in Equity and Members’ Interests For the Period Ended 30th June 2013

Group 2013 30 June

$000

Group 2012 31 March

$000

Equity at the beginning of the period 12,273 9,876

Profit left in our Society 3,888 2,397

Bonus Share issue (13,000) -

Equity at the end of the period 3,161 12,273

Share capital repayable on demand at beginning of the year 41,765 37,464

Net contribution from owners 7,169 4,301

Bonus Share issue 11,740 -

Bonus Rebate applied to share capital - 4,835

Equity from merged Society 49,370 -

Members interests’ at the end of the year 113,205 58,873

Summary Statement of Cash Flows For the Period Ended 30th June 2013

Group 2013 15 Months

$000

Group 2012 12 Months

$000

Net cash flows from operating activities 23,986 4,385

Net cash flows (to) investing activities (17,678) (9,986)

Net cash flows (to) financing activities (7,543) (1,518)

Cash introduced from merged Society - bank borrowings (41,013) -

Net (decrease) in cash held (42,248) (7,119)

REPORTING ENTITY

The Summary Statements presented are those for Farmlands Co-operative Society Limited and its subsidiaries for the fifteen months to 30th June 2013. On 1st March 2013, Farmlands Trading Society Limited was merged into Combined Rural Traders Society Limited and a change of name to Farmlands Co-operative Society Limited was registered, with a change of balance date to 30th June. Comparative figures for the year to 31st March 2012 are prior to this merger. Consequently, the figures presented are not directly comparable to the previous year.

MERGER OF SOCIETIES

While this was a merger of the two Societies, for accounting purposes Farmlands Co-operative Society Limited acquired all the assets of Farmlands Trading Society Limited and assumed responsibility for their liabilities. There were nonrecurring expenses in connection with the merger of $3,063,000 included in the costs to run the Society in the 15 months to 30th June 2013.

A summary of the effects incorporating the merged Society at 1st March 2013 is as follows:

Group 2013 $000

Accounts Receivable ....................................82,480 Inventories ....................................................41,066 Property, Plant and Equipment .....................31,431 Intangibles .........................................................927 Deferred Tax Asset ..............................................32 Tax Refund Due .................................................610 Bank Borrowings ....................................... (41,013)Accounts Payable ...................................... (68,228)Employee Entitlements ................................... (428)GST Payable .................................................. (364)Total identifiable net assets ...................... 46,513

Shares as consideration .............................. 49,370Less Goodwill ............................................... 2,857 Total ............................................................ 46,513

EVENTS SUBSEQUENT TO BALANCE DATE

On 5th September 2013, the Society acquired part of the business of Viterra (NZ) Limited. Property, plant and equipment and the business of “NRM” have been acquired for a consideration of $4.4 million. In addition to this, inventory for normal trading activity up to a value of $12 million will be acquired. The purchase will be completed over the next two months.

NOTES TO SUMMARY FINANCIAL STATEMENTS

The specific disclosures included in this summary financial report have been extracted from the full financial report, which was authorised for issue on 26th September 2013. The full financial statements have been prepared in accordance with full NZ GAAP as a profit-oriented entity and the Group has made an explicit and unreserved statement of compliance with IFRS’s in the full financial report. The full financial statements have been audited and an unmodified audit opinion has been issued. These summary financial statements comply with FRS 43. Figures are in New Zealand dollars. The summary financial report cannot be expected to provide as complete an understanding as provided by the full financial report of the Group.

If you require a full set of accounts, please write to: The Secretary, Farmlands Co-operative Society Limited, Private Bag 1968, Dunedin 9054, giving your name, address and CRT/Farmlands shareholder number and we will forward a copy to you.

Stephen Higgs Secretary

Lachie Johnstone Director

Don McFarlane Director


Independent Auditors’ Report on Summary Financial Statementsto the shareholders of Farmlands Co-operative Society Limited

We have audited the accompanying summary financial statements, which comprise the

summary statement of financial position as at 30th June 2013, the summary statement of

comprehensive income and summary statement of changes in equity and summary cash

flow statement for the fifteen months then ended and related notes, which are derived from

the audited financial statements of Farmlands Co-operative Society Limited for the fifteen

months ended 30th June 2013.

The summary financial statements do not contain all the disclosures required for full financial

statements under generally accepted accounting practice in New Zealand. Reading the

summary financial statements, therefore, is not a substitute for reading the audited financial

statements of Farmlands Co-operative Society Limited.

Directors’ Responsibility for the Summary Financial Statements

The Directors are responsible for the preparation of a summary of the audited financial

statements in accordance with FRS-43: Summary Financial Statements.

Auditors’ Responsibility

Our responsibility is to express an opinion on the summary financial statements based

on our procedures, which were conducted in accordance with International Standard on

Auditing (New Zealand) 810: Engagements to Report on Summary Financial Statements.

Other than in our capacity as auditors we have no relationships with, or interests in,

Farmlands Co-operative Society Limited.

Opinion on the Financial Statements

Our audit of the financial statements for the fifteen months ended 30th June 2013 was

completed on 30th September 2013 and our unmodified opinion was issued on that date.

We have not undertaken any additional audit procedures from the date of the completion

of our audit.

Opinion

In our opinion, the summary financial statements have been correctly derived from the audited

financial statements of Farmlands Co-operative Society Limited for the fifteen months ended

30th June 2013 and are consistent, in all material respects, with those financial statements,

in accordance with FRS-43.

Restriction on Distribution or Use

This report is made solely to the shareholders of Farmlands Co-operative Society Limited,

as a body. Our audit work has been undertaken so that we might state to the Society’s

shareholders those matters which we are required to state to them in an auditors’ report

and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Society and the Society’s shareholders, as a body,

for our audit work, for this report or for the opinions we have formed.

Chartered Accountants Dunedin30th September 2013

PricewaterhouseCoopers, Level 1, Westpac Building, 106 George Street, PO Box 5848, Dunedin 9058, New Zealand T:+64 (3) 470 3600, F:+64 (3) 470 3601, wwwpwc.com/nz


Governance and the Board of Directors

The eight shareholder Directors are located equally between the

North and South Islands, four in each, as required by the rules.

The independent Directors are also based one in each island.

Board Responsibilities

The Board has responsibility for the affairs and activities of the

co-operative, while the day to day operations and administration

are delegated to the Chief Executive.

The Farmlands Board follows best governance practice and the

four pillars of governance, as advocated by the New Zealand

Institute of Directors, establish the basis for that best practice.

The four pillars are:

• Determination of purpose

• An effective governance culture

• Holding to account

• Effective compliance

More specifically, the responsibilities include directing and

supervising management in the following areas:

• Ensuring that the co-operatives goals are clearly established

and strategies put in place to achieve them

• Establishing there are policies to improve performance

• Monitoring the performance of management

• Overseeing and monitoring the co-operative’s financial position

• Ensuring that the co-operative adheres to appropriate values,

ethics, and corporate behaviour

• Ensuring that there are risk management and compliance

policies in place

Board Committees

The Farmlands Board operates with three committees;

• Audit and Risk Management - Peter Wilson (Chair),

Joe Ferraby, John Foley and David Jensen

• Remuneration - Lachie Johnstone (Chair), Craig Boyce,

Nikki Davies-Colley and Don McFarlane

• Shareholder - Howie Gardner (Chair), Joe Ferraby

and Tony O’Boyle

The Audit and Risk Management Committee assists the Board in

matters relating to auditing, financial reporting and risk.

The Remuneration Committee reviews the performance

and sets the remuneration of the Chief Executive, reviews

the remuneration of the Executive team and recommends

remuneration of Directors to shareholders.

The Shareholder Committee is charged with considering the

relationship between shareholders and the co-operative. The

Board is united in its belief that a critical component of what

can influence the co-operative’s success is how the shareholder

relationship is managed - especially communication. Information

is provided to shareholders through the monthly shareholder

magazines, the Farmlands website, the Annual Report and the

Annual General Meeting of the co-operative.

Board Meetings

Farmlands Board meetings are scheduled at the beginning of

each month with extra meetings held if required. Management

reports from across the business are provided to Directors in the

week leading up to the monthly meetings. Senior management

from the co-operative are introduced to answer specific queries

on those reports and to provide insight into relevant issues.

Farmlands has eight shareholder Directors, elected and approved by shareholders and two

independent Directors appointed by the Board. Shareholder Directors retire by rotation after three

years, that rotation beginning for the new merged co-operative in 2014.


Farmlands Board of DirectorsLachie Johnstone Lachie Johnstone joined the Farmlands

Trading Society Board in 2000 and was

Chairman from 2003 until 2013. He became

the inaugural Chairman of the newly merged

entity in March of this year. He has a

commerce background and worked as an

accountant before moving onto the family

farm in the Waikato, which expanded to

935ha involving an intensive bull beef system,

breeding ewes, cows and trading cattle.

Lachie is currently managing Director and

majority shareholder of the food logistics

company, Wholesale Frozen Foods Limited.

He was previously a Meat New Zealand

mentor group member and has been

involved in community-based farm research

projects conducted through AgResearch

and the Foundation for Research, Science

and Technology. He is also a councillor on

the New Zealand Co-operatives Association

and has served as a Board member (and

Chair) on school boards.

Don McFarlane A Nuffield and Kellogg Scholar, Deputy

Chairman Don McFarlane has directorships

with New Zealand Honey Co-operative,

Moeraki Ltd and Presbyterian Support SC.

He chairs Clough Holdings/Duncan Ag,

which manufactures farm equipment and

seed drills for NZ farmers and exports to

several countries. He is a Director of Hunter

Downs Irrigation Ltd, which has consents

to irrigate 35,000ha south of Timaru.

Don, his wife Di and son Hamish farm

700ha fully irrigated near Temuka. The farm

produces carrots, cereals, potatoes, grass

seeds and blackcurrants. Dairy support

and cow wintering, as well as winter lamb

finishing are the main grazing activities.

Nikki Davies Colley Nikki and her husband Peter have been

Farmlands shareholders since 2004. Nikki

is well known in the Northland business

and farming community.

She has been a Board member of

Northpower Ltd for the past 15 years and

holds a Masters in Business Administration.

Nikki is also a Director of Landcorp

Farming Limited, West Coast Energy

Pty. Limited and Whangarei Local Fibre

Company Limited.

Nikki is experienced in strategic analysis,

project management, motivation and

ensuring that agreed strategies are carried

through to implementation.

Joe FerrabyA Kellogg Scholar, Joe and his wife Carolyn

live on their 690ha irrigated sheep and

beef property in the Awatere Valley in

Marlborough. Joe is also a Trustee and

Director of a large neighbouring property

and a Director of a large corporate farming

business with properties in New Zealand

and Australia. He chairs Terra Vitae

Vineyards, a publicly owned viticultural

company owning 400ha of vineyards in

Marlborough and Hawke’s Bay, is Chairman

of ANZPAC Oils Ltd - the Farmlands

owned distributorship of Gulf Oil for New

Zealand, Australia and the Pacific Islands

and is Chairman of a large family owned

construction company and its subsidiaries

based in Blenheim. His past governance

roles have included PPCS, Silver Fern

Farms, the Silver Fern Farms North

Island Shareholders Council, Destination

Marlborough Trust, Marlborough Lines,

Nelson Electricity and Northbank

Forests Ltd.

John FoleyJohn and Ruby run a farming operation

comprising a 500ha intensive cropping,

dairy support and livestock fattening

property in Tokarahi, North Otago.

This operation supports their 200ha

dairy farm. Alongside this they run an

agricultural services business.

John has had many governance roles

and has previously won the East Coast

FMG Royal Excellence Award and went

on to win the AC Cameron Award. He is

a graduate of the Rabobank Executive

Development Programme, a member of

the NZ Institute of Directors and is Vice

President of the Oamaru Jockey Club.

Howie Gardner Howie, his wife Marion and son Rhys

run a 12,300 stock sheep and beef

unit in the Puerua Valley, South Otago.

The operation includes a Perendale

stud flock.

The wool industry is of particular

interest to Howie and he is a Director of

BACK L-R: John Foley, David Jensen, Craig Boyce, Joe Ferraby, Nikki Davies Colley, Tony O’BoyleFRONT L-R: Howie Gardner, Don McFarlane (Deputy Chairman), Lachie Johnstone (Chairman), Peter Wilson

both Primary Wool Co-operative and joint

venture company Elders Primary Wool. He

has been closely involved with the creation

and development of the Just Shorn wool

carpet and rug brand, currently operating

in the United States.

Howie also chairs the Farmlands

Shareholder Committee.

David JensenDavid Jensen joined the Farmlands

Board in 2006 and was Chairman of its

Audit Committee.

David lives at Pyes Pa, Tauranga,

where he has a 300ha dairy farm, 14ha

of kiwifruit and 5ha of avocados.

David is a Director of Livestock

Improvement Corporation and was

a Director of Satara Co-operative,

a New Zealand kiwifruit and avocado

co-operative. He remains Chairman of

Satara Kiwifruit Supply Limited, a related

but separate entity. He is also on the

Executive of Tauranga-Katikati Vet Club.

Previous positions include Director

on the Livestock Improvement Regional

Board, farm consultancy for the

New Zealand Dairy Board, a councillor of

the New Zealand Dairy Group, manager

of the National Dairy Excellence Awards

and Grower Director and past Chairman

of AvoFresh.

Tony O’BoyleTony O’Boyle joined the Farmlands

Board in late 2010. Tony, together with

his wife Pattie have experience in both

dairy and drystock, having grown up in

the Central Plateau. They still operate a

dairy farm under a 50/50 agreement in

the area but now reside in the Wairarapa,

where they farm a 1000ha hill country

sheep and beef farm.

Tony has had various industry roles,

including with NZDG, a Chairman of

the Fonterra Shareholders’ Council and

various Board sub-committees. Past

and present directorships include being

a Director of both Rotorua Vet Club and

ANZPAC Oils.

Tony is no stranger to the ethos of the

co-operative structure, as his grandfather

wrote the Co-operative Act 1956.


Craig BoyceCraig Boyce has been a Director or Chairman

of a variety of New Zealand companies

operating in diverse market environments.

His current involvement includes Ovation

New Zealand (formerly Bernard Matthews),

Progressive Leathers, Horizon Farms,

Datacom, Orion, Smiths City, Snowy Peak

and Transdiesel.

Peter WilsonPeter Wilson joined as an independent

Director of the Farmlands Board in 2007.

He is a chartered accountant and professional

company Director, serving on the boards

of several national companies and lives in

Otaki. Peter is past Chairman of Westpac

New Zealand Limited and past Director of

Westpac Banking Corporation of Australia.

He is Deputy Chairman of Meridian Energy

Limited. He previously worked in public

practice in Hawke’s Bay and held numerous

Directorships of Hawke’s Bay companies, was

Chairman of Healthcare Hawke’s Bay and the

Port of Napier Limited. Peter also chaired the

former Hawke’s Bay Farmers’ Meat Company

during industry restructuring in the late 1980s.

Independent Directors


RetailFollowing the amalgamation of CRT and

Farmlands in March 2013, the retail team

has been busy ensuring that our frontline

teams remain focused on delivering value

to our combined shareholders. It has

been great to see the cultures of the two

co-operatives coming together and enables

us to build a new culture that ensures our

shareholders are our focus in retail.

The Year in Review

While Farmlands is now the largest rural

supply company in New Zealand, adding

value to our shareholders remains the

main focus of the business. Our vision in

Retail is “to maximise our shareholders’

profitability through offering rural solutions

using innovative co-operative principles”

and is made up by three core areas.

• having a strong Technical Sales team

both in-field and in-branch

• ensuring our branches have good in

stocks of leading branded products

at competitive pricing

• having a strong focus on customer service

The retail sales force boasts more than

100 Technical Field Officers (TFOs), along

with product specialists and retail staff

in 80 retail stores nationwide. Our team

of TFOs provide on-farm advice - they

are devoted to helping farmers achieve

production objectives by providing

solutions tailored to individual farm

conditions. TFOs have expert knowledge

and understanding of modern farming

systems to help provide industry leading

solutions. Together they provide a

network of shared knowledge that

shareholders can call on at any time.

A product knowledge development

programme was introduced into our

branches to ensure our staff can provide

the best advice to our shareholders.

Employees who are passionate about

developing their knowledge in key

areas and take responsibility for their

own personal development are formally

identified. We then tailor activities that

help develop their knowledge.

This previous year has seen further

expansion to our store network with a

new branch in Wellsford. There have also

been relocations to new purpose built

stores in both Taumarunui and Gisborne

and branch refurbishment in Te Puna.

Result

The last year results were pleasing, given

a number of farming sectors experienced

challenging times and the impact of

drought conditions across large parts

of the country. Despite these challenges

we achieved 3.5 percent growth in

retail sales, which reflected well on

the efforts of all our retail team. Retail

costs were well managed, with all teams

under-spending for the year.

...to maximise our shareholders’

profitability through offering rural solutions

using innovative co-operative principles...”

“

• The expansion of our Technical Sales team both in-field and in-branch

• The introduction of new ranges of leading branded products at competitive pricing

• The expansion of Farmlands Horticulture

• Continued growth in both sales and market share

Highlights of the year

Geoff TaylorGeneral Manager Retail


Looking Ahead

We now have our senior management

team in place for retail following the

merger and it is a great mix of senior

members from both co-operatives, with

a couple of new faces. The new team’s

focus is concentrated in three areas:

• Leveraging of our larger buying

power and obtaining better deals for

our shareholders

• Identify operational efficiencies that can

be gained from the merger

• Identify ways that we can maximise our

shareholders’ profitability

Farmlands Horticulture

The past year involved two key aspects.

The first was to grow our Technical

Advisor team to cover the whole of New

Zealand and the second was to rebrand

Skeltons to Farmlands Horticulture as we

bring consistency to our overall branding.

The Horticulture team now comprises of

35 Technical Advisors, whom are now

domiciled in every main horticultural area

Luke HansenNational Horticulture Manager

Despite the challenging environmental

factors throughout the year, Farmlands

increased fertiliser market share year on

year. Factors contributing to this result

were strong shareholder support at a

local and regional level, an expanding

branch network and a great team of staff

moulding all of these factors together.

Farmlands conducted a number of

innovative fertiliser campaigns during

the year in partnership with Ballance

Agri-Nutrients where specific groups of

shareholders were targeted. The results

were extremely positive and we achieved

significant new growth in all Farmlands

geographic regions and shareholder farm

types. Shareholder spend on average

was maintained however, as nitrogen

based products were in strong demand

and prices softened throughout the

season. It is good to see the productive

capacity of our farms being maintained.

in New Zealand. Growers have

welcomed the increased size and ability

to deal with a national supplier. We

continue to introduce innovation and have

introduced many new products to our

growers that reflect our commitment to

the industry.

Farmlands Fertiliser

We had a particularly good start to the

financial year with unprecedented sales

in April underpinning the first quarter.

Following a slow start to the spring,

November became our best month for

sales to date. The strong performance in

these two months softened the impact

of the drop in sales from the late summer

on as many areas suffered from the dry.

While sales dipped in the last quarter, it

is worth noting that they only fell to be in

line with historic averages after what was

an exceptional quarter last year.


Nutrition

The Year in Review

This past year saw the full introduction

of forward seasonal contracting of

bulk dairy meal, palm kernel, calf feed,

sheep nuts and our deer feed range.

The uptake across our product range

far exceeded expectations. For the

mills, the forward contracts enable the

procurement and production teams to

secure all required inputs, raw materials

and production resources.

Further development of our technical

team during the year was essential and

saw Dr Robert (Rob) Derrick (Nutritionist)

and Grant Hay (Business Development

Manager) join to complement and assist

our current team.

Dr Rob, originally from the United

Kingdom, holds a degree in Agriculture

and a PhD from University College

of Wales Aberstwyth. He ensures

shareholders receive the best advice

across the board, covering everything

from milking to high input feed systems.

Grant holds a degree from Lincoln

University and previously worked as a

seed production specialist/commercial

manager for DSIR Grasslands (now

AgResearch). His role is to provide our

shareholders and corporate farms sound

sustainable systems and product advice

that will enhance their animal nutrition.

Results

Through the strengthening of our

technical team and the forward

contracting offering, we saw production

records broken month on month during

the season. Further development of

production processes were achieved

during the year, which enables the

business to continue to meet the growing

nutritional demand of shareholders.

With raw material market costs trending

upwards steadily over the past year,

increased production contributed

to reducing our operational costs.

This minimised the price increases to

shareholders and maximised the profit

contribution to the co-operative.

Looking Ahead

The merger between CRT and Farmlands

presents a fantastic opportunity to take

our complete nutrition solution nationally.

Through technical support, trust and a

partnership, our shareholders receive

quality feed, nutritional advice and

on-farm support that delivers on

productivity and animal wellbeing. Our

shareholders have become very loyal

to the brands and services offered by

Farmlands Nutrition, extending through to

the other trading divisions.

Farmlands Nutrition is also responsible

for the strategy, product and technical

offering through our national Retail stores.

Moving forward, this will ensure that our

offering at each store is in alignment with

our message.

Meeting the market will continue to

be critical, so the technical support

and advice from our Nutritionists and

Technical Feed Specialists will be that

much more important to on-farm value

and productivity gains for shareholders.

I would like to thank the entire Nutrition

team for the fantastic effort and support

they have delivered to shareholders

over the past year and also to the

shareholders that have utilised our

technical team and products. The year

ahead is exciting and the Farmlands

Nutrition team look forward to adding

value and maximising on-farm

productivity for shareholders nationally.

• Production records broken month on month through season

• Further development of technical team

• Through merger, opportunity for national extension to nutrition solutions


”

“

With a name change from CRT Feed

to Farmlands Nutrition, our focus

moved from being just a feed

manufacturer and supplier, to further

strengthening our technical team to

deliver a complete nutritional solution

for our shareholders.

... we saw production records

broken month on month during

the season.

Phillip Bracefield General Manager Nutrition


Livestock

A season that initially had feed

surpluses, a market constrained with

falling commodity prices and farmer

confidence, a record breaking

mid-season national drought and

coping with increasing shareholder

demand led to a challenging and

demanding year for all concerned.

The Year in Review

Our strategic staff acquisitions from

the previous year in the sheep, beef

and dairy sectors really came into their

own. Combined with relationships with

North Island industry counterparts,

this meant that your Livestock team

could utilise our networks to maximise

buying and selling decisions made

at times under duress because of

climatic conditions.

A key focus was to provide a

comprehensive service to our dairy

shareholders, not only buying and

selling herds and replacement stock

but to trial shareholder demand for a

comprehensive grazing service with

dedicated grazing specialists. The initial

trial in Central Canterbury has been well

received and grazing revenue across

the wider company has increased

1000 percent versus 2011/12. The trial

was integrated with our own on-farm

Technical Field Officers’ knowledge and

advice of specialist grazing and forage

crops. The demand for qualified dairy

grazing continues to grow.

Shareholders have embraced the

opportunity to sell and purchase stock

from weekly store and prime stock sales

where we are represented at Lorneville

– Invercargill, Charlton – Gore and at

Temuka, the South Island’s largest weekly

selling facility, Coalgate and Canterbury

Park – Christchurch, where we sell in

conjunction with other companies.

An increasing number of livestock

finance facilities for trading and capital

stock purchases have been approved by

Farmlands Finance.

Results

From its inception three years ago,

Farmlands Livestock sees more

and more shareholders making the

decision to favour the co-operative with

their business.

Commission transactions conducted

by shareholders saw in excess of

140,000 Choices Points rebated on

commission paid. The original business

plan to create competition and increase

service levels, coupled with focusing on

shareholder profitability was proven during

this past season.

Looking Ahead

We are in the fourth year of annual

on-farm lamb sales. Repeat business

is evident with more scheduled for the

upcoming season.

Industry opportunities and industry

experienced staff have been forthcoming

and continue to be considered on their

merits in the best interests of shareholders.

We will consider further strategic

alliances to strengthen our total business.

Further development of our national

network will see the mitigation of risk for

our shareholders during times of drought

and price adversity.

...in excess of 140,000 Choices Points rebated on commission

paid.”

“• 140,000 Choices Points rebated

• Dairy grazing specialist service

• Our people, agents and administration


Calvin LeenGeneral Manager Livestock


Grain and Seed

The Year in Review

Our result was achieved through our ability

to react to market changes and buy and sell

grain, capitalising on good harvest yields, firm

prices and strong nationwide demand. Our

sales volume to dairy farmer shareholders

and our own feed mills continues to increase.

Our seed multiplication business

continues to increase in volume, with a

54 percent increase in the procurement of

“commons” for our retail seed department

and additionally, our proprietary seed

multiplication production for domestic

wholesalers and seed production for export

was up 10 percent.

The positive support of our shareholder

arable growers is reflected in the increased

volumes of product traded and an

acknowledgement of an important service

being provided by the co-operative.

Retail Seed had another solid year, with

both an increase in turnover and increase in

the volume of physical product sold, mainly

as a result of a switch in the autumn to

sowing forage cereals and annual grasses,

instead of the usual perennial ryegrass mixes.

The seed stores continue to operate very

efficiently and effectively, with staff being

regularly complimented on the high level of

service and prompt delivery of seed orders.

Our HT Brassica sales were well up on

last year, with the acceptance and increased

use reflecting the benefits of this new

technology. Kale seed sales continue to

grow in response to dairy support demand.

Results

The Grain and Seed division has produced

another terrific annual financial result. It is the

third consecutive year of year on year growth.

The tonnage of feed grains purchased

from shareholders significantly grew to

match the sales opportunities we had

available and the crop options offered

on a forward basis had good uptake for

ryegrasses, brassicas, carrots and beet.

Our Retail Seed sales volume increased

through our processing and delivery of

orders, through our efficiently operated

seed stores and the ongoing provision of up

to date product information to sales staff.

This develops and maintains their specialist

technical agronomy expertise, product

knowledge and advice.

Looking Ahead

There will be increased opportunities for

shareholders to supply feed grains to the

co-operative’s feed mills and direct contract

options, with the ongoing demand for

supplementary feed from dairying.

The merger has presented opportunities

for increased ryegrass and clover seed

multiplication production for our arable

shareholders to supply our North Island

Retail Seed demand.

The area sown of HT Brassicas, kale and

fodder beet is forecast to increase, as these

forage crops become more important winter

feed options. We anticipate above average

seed demand in spring 2013, as the forage

cereal crops and annual grasses sown in the

last summer / autumn period are replaced.

Our Turf business continues to

grow following the appointment of a Turf

Seed specialist last year. We have an

increased offering of lawn seed options

available for shareholders in our branches

and are increasing sales to third parties

in this high value specialist turf market.

We are developing existing relationships

to increase export sales of turf seed into

Australia and the United Kingdom.

We are continuing to provide our

TFOs with up to date training in the uses

and management of both forage and

arable crops. This investment in staff and

resources will ensure that we play an

important part in the future of maximising

shareholders’ profitability.

• Record grain trading year, sales up 35 percent

• Record retail seed sales, up 9 percent

• Top Cleancrop Brassica system (HT) reseller

• Addition of Turf Business Sales Manager and Arable Agronomist


Mark ElliotteGeneral Manager Grain and Seed

”

“

Grain and Seed had a record breaking

year, with our trading volume turnover

up 35 percent on 2012. Our third party

sales to external grain buyers and

shareholders was up 57 percent and

this accounts for more than half our

grain business.

The Grain and Seed division has produced another

terrific annual financial result.


Finance

Now into its fourth year, Farmlands

Finance continues to grow as more

shareholders engage with the services

we provide. As we expand nationally,

our goal to assist as many of our

shareholders as possible is beginning

to gather pace.

The Year in Review

One of Farmlands’ quiet achievers is the

Finance company. Established late in

2009, the company has cemented itself

to meet several core goals, being:

• Provide an effective working capital

alternative for our shareholders

• Offer competitive terms and fixed

interest rates for plant, machinery and

vehicle purchases

• Support interest free and interest

bearing promotions of products

sold through the various Farmlands

sales networks

Currently Finance offer four products - a

deferred product called Creditline as

well as Term Loan, Hire Purchase and

Livestock Finance. These products

can be tailored to meet various funding

requirements of our shareholders, such

as purchasing livestock, plant and

machinery, as well as provide seasonal

cashflow support.

Many shareholders have commented

that Creditline is a useful tool in managing

cash flow.

During the year further specific

promotional opportunities have been

developed that allow shareholders to

Finance became Farmlands Finance. This

change aligns with the overall strategy for

brand change.

Looking Ahead

Our focus remains on growing our lending

by assisting more shareholders with

funding. During the next few months

shareholders can look forward to the

following initiatives:

• Farmlands Finance will be formally

launched to all shareholders

• By working closely with all Farmlands

activities, we can offer finance options

on a wide variety of products

use farm supplies now - but they don’t

have to pay for them until later. One

such promotion working with Farmlands

Nutrition and one of our suppliers

provided a buy now, pay later interest

free facility for in-shed feeding systems.

This has solved a specific need for our

shareholders. Look out for this promotion

to be advertised nationally early in the

New Year.

The merger has generated a substantial

opportunity to grow the Finance offerings

nationally to our shareholders.

During the latter part of 2013, CRT

• Expect further special deferred deals

through Farmlands

• Increased HP opportunities through

suppliers

• Continuing to manage risk within a

conservative lending policy

• Grown lending by more than 40 percent

• More than 1500 shareholders using the various Finance products

• More promotional opportunities offered

• Maintained competitive interest rates


Many shareholders have commented that Creditline is a useful tool in

managing cash flow.”“

Daryl Aitken General Manager FinanceFarmlands Finance Limited


Real Estate

Calvin LeenGeneral Manager Real EstateCRT Real Estate Limited

The Year in Review

The 2012 spring market brought

optimism, which led to a great number of

conditional farm contracts being written.

Nervousness surrounding forecast

commodity prices for sheep and beef,

coupled with the dairy pay out, saw many

conditional contracts lapse.

Post-Christmas confidence grew

despite the dry conditions and we

recorded strong farm sales. Prices

achieved strengthened and at times

reached market highs of pre-2008.

Our residential business is driven from

provincial South Island towns, where

there is an affinity with the co-operative.

Thirty percent of the number of Sale and

Purchase Agreements are written by

our residential team. In South Canterbury,

a property management service

was introduced in October 2011 to

support demand. The business has

grown dramatically.

The lifestyle market followed the rural

trend with an initial spring rush, tapering

off pre-Christmas but recovering on a

month-by-month basis. The Canterbury

market has been driven by earthquake

relocations and the increase in lifestyle

block subdivisions has been fuelled

by demand.

Total market share in South Canterbury

was increased with the acquisition of

Southern Wide Real Estate Waimate

and Timaru. They have blended into the

co-operative’s culture, added value and

are delivering results.

Results

Shareholders have recognised our

growth and market presence. They have

favoured their company with an all-time

• 550,000 Choices Points rebated to shareholders

• Awarded significant property portfolios to disperse for two State Owned Enterprises

• Acquisition of Southern Wide Real Estate South Canterbury


Despite a year of market challenges,

the Real Estate team posted figures

that are not only a cause for optimism

but also celebration. The decision to

retain rather than shed staff has paid

dividends and results have rewarded

that consolidation.

record number of listings across all

markets. The strong showing in

2013 led to an annual result which

exceeded expectations.

Our strategy in the difficult years of

2009-2011 to retain salespeople and staff

was repaid in 2011/12 with a 53 percent

increase in the number of transactions

recorded versus 2010/11. In 2012/13,

this strategy has seen shareholder

support for Real Estate grow. In return

they were rebated in excess of 550,000

Choices Points on gross commission

paid, reaching an all-time high within the

20 year history of CRT Real Estate.

Our people are our business.

Looking Ahead

Our strong branding and global

online marketing has seen web traffic

like never before. Our global reach has

resulted in shareholders receiving

offers from overseas purchasers and

New Zealand corporates.

How does the merger benefit Real

Estate and you? Coupled with our global

reach and increased market share, the

biggest advantage for our South Island

vendors selling property is national

exposure to an audience of 55,000

shareholders. This scale has been a key

factor with Real Estate being favoured

with significant large rural holdings and

premier lifestyle and residential listings.


FuelWhether by tanker or fuel pump,

Farmlands Fuel has worked hard to

ensure shareholders receive bulk

fuel solutions to complement their

businesses. This financial year brought

a rebrand and expansion – and your

Fuel division has come out the other

side not only stronger but also more

visible in the national market.

Mark McHardyGeneral Manager Fuel

The rebranding of CRT Fuel to Farmlands

Fuel on July 1st, 2013 marked another

significant milestone in the history of the

co-operative’s fuel business. Appropriately,

the name change capped off another

strong year for the division with further

growth and diversification achieved,

delivering more benefits to shareholders

and other customers.

Over the past year we have implemented

Touchstar, an automated electronic system

that transfers trip data from the truck to our

core system. This is an exciting innovation

that will deliver operational efficiency to

our business. Our bulk and card fuel offers

continue to provide great value to our

customer base. This, together with the

impressive range of Gulf lubricants on offer,

makes Farmlands Fuel a viable one-stop fuel

shop for all fuel and oil requirements.

Farmlands Fuel offers the following

benefits to you as a Farmlands shareholder:

• Competitive prices, with some profits

from the operation returned to those

shareholders who support us by way of

a bonus rebate

• We provide purchase summaries,

enabling shareholders to claim on

Petrol Excise Tax (currently returning

around 60 cents per litre)

• Our experienced tanker drivers operate

40 trucks out of 11 ports and deliver

throughout New Zealand

• A full range of lubricants and oils from

the iconic Gulf range

• A comprehensive offer on fuel tanks,

bunds and equipment, offering specialist

advice and bulk fuel storage solutions

• Provide easy to understand advice on

achieving fuel storage compliance

In the year ahead we will continue to

focus on the commercial market share of

Gulf lubricants. We have already made

good gains throughout New Zealand and

look forward to increasing market share

significantly in the year ahead.

The Farmlands Fuel DieselStop network

continues to expand, with Whakatu and

Pukerau our latest additions. Our network

provides convenient diesel refuelling

options for our commercial transport

operators and shareholders alike.

Farmlands Fuel assists customers to

achieve fuel storage compliance. This is

an important part of the business and

demonstrates our total commitment to safe

fuel storage options.

We are driving the continued growth

of the Challenge retail network to expand

distribution and bring competition into

areas where we see there are opportunities.

Volumes of fuel delivered to Challenge sites

trended up during the year and we expect

this to continue as we expand the network.

We have also just completed a review of

the branding image of the sites. We

have initiated work on refreshing the

external image of the sites. This project

is underway and will be completed before

the end of 2014.

• Continued growth in fuel supply to rural and commercial sectors

• Further expansion of Challenge network

• Expansion of the Gulf lubricant range

• Expansion of Farmlands Fuel’s unmanned DieselStop network

• Further development of comprehensive Health and Safety / Compliance plans

• Implementation of the delivery data capture system Touchstar


We... look forward to increasing market share

significantly in the year ahead.”

“


LubricantsGulf – It’s your brand.

This year has been excellent for

Farmlands Lubricants, with our iconic

Gulf brand establishing itself as one of

quality and reliability throughout

New Zealand. Shareholder acceptance

of Gulf Oil has been magnificent, with

encouraging growth across all sectors

of the co-operative.

The Year in Review

Farmlands Lubricants supplies Gulf

Lubricants to Farmlands Fuel, Farmlands

Retail stores and direct sales to car

workshops and is 100 percent owned

by the co-operative. Being the importer

means that our shareholders benefit from

having an international top quality brand

at reduced cost.

Our Gulf Lubricants range includes

products suitable for use in every type of

engine and machine.

Since the launch, there has been a

significant uptake by shareholders and

large users, who are seeing the value

delivered by the co-operative distributing

Gulf Lubricants here in New Zealand.

Being custodians of one of the world’s

best known brands, it is incumbent on

us to showcase Gulf’s rich heritage

wherever possible.

In January, Gulf sponsored the

4th New Zealand Festival of Motor

Racing at Hampton Downs track. The

Festival commemorated 1967 F1 world

champion, Denny Hulme, who competed

in 59 Formula One races and 22 Can-Am

races under Gulf sponsorship, taking the

Can-Am title in 1968 and 1970. This event

was a huge success with a large number

of shareholders and customers attending.

The global success of Gulf since

1901 has been achieved through leading

edge product technology, supported

by the most up to date marketing tools

available. We are also seeing great

traffic through our New Zealand website,

www.gulfoil.co.nz. Check out our busy

Gulf Oil Facebook page, which boasts

3200 “likes” since establishment, at www.

facebook.com/gulfoilnz.

Results

The merger of CRT and Farmlands in

March paves the way to further create

significant value for shareholders across

the nation through the Gulf brand.

Total litres sold increased by 56

percent, while the Farmlands Fuel team

posted a 65 percent increase in volume

over the previous 12 months.

Looking Ahead:

We are currently launching the world

famous Gulf brand into Farmlands’ North

Island branches.

The theme of the most recent edition

of Gulf Oil International’s “Orange Disc”

magazine is “synergy”. This is defined

as “co-operative interaction among

merged parts that creates enhanced

combined effect”.

This sums up what we at Farmlands

Lubricants are striving for this coming

year. Shareholders will transition to a

more competitive lubricant offer through

your own brand in New Zealand -

the end result being significant benefits

to the shareholder.

Think lubricants – Think Gulf.

”“

• Strong increase in total sales volumes

• Introduction of Gulf Lubricants to our North Island Retail network

• Robust growth from the Farmlands Fuel team, expanding rural and commercial customer base

• More than 4,500 orders received since launch

• Gulf sponsors 4th New Zealand Festival of Motor Sport


...65 percent increase in volume over the previous

12 months.

$10

LEFT: Denny Hulme, Watkins Glen Can-Am race

25 July 1971. Courtesy of Patricia Kerr

race classes

cars of interest and more

PROGRAMME OF EVENTS

HAMPTON DOWN MOTORSPORT PARK, NEW ZEALAND : 18-20 JANUARY 2013 & 25-27 JANUARY 2013

Nick HughesManager Farmlands Lubricants


Card

• Co-operative purchasing power with 120,000 rural charge Cards

• Fuel card rebates increase more than 35 percent

• Shareholders billing Meridian Energy now receive a 1 percent bonus rebate

• Cards accepted nationwide at more than 5000 locations


CRT Card in Review

Following merger there has been

considerable interest in our CRT Card

partnerships with both existing and

new card suppliers. We have achieved

considerable gains with many of

our existing suppliers based on the

national scale of the merged company.

New Card Partner applications

are considered where they can

demonstrate significant additional

benefit to our shareholders through

their offer.

Farmlands Card in Review

The Farmlands Card team had another

hyperactive year. The highly successful

2012 Legendary Party campaign ended

with Te Awamutu branch declared the

overall winners. This was followed by

the Ladies Night series in October,

before Farmlands celebrated 50 years

of business. A major promotion ended

with us giving away a Ford XR6 to a lucky

Pahiatua shareholder, we put on some

Duck Shooting Shindigs and then went

off to Fieldays at Mystery Creek.

The Farmlands Card grew modestly

year on year, in spite of the drought

conditions faced by shareholders in

the North Island. Chargeback of both

insurance and power was particularly

strong and our card partner network

supported our efforts with some excellent

promotional offers.

Looking Ahead

Since the merger, significant opportunities

have presented themselves to Farmlands

and we have seen some of these offers

already presented by the card team.

Aligning the national card platform has

had some immediate success, with

thousands of North Island shareholders

Aligning the national card

platform has had some immediate

success...

From individual highlights such as Mystery Creek Fieldays and the

2012 Legendary Party, both Farmlands and CRT Cards are looking

forward to a progressive year together. The merger now affords

us a comprehensive opportunity to get even more value from your

co-operative membership, on a scale befitting the power of

purchasing for 55,000 shareholders. Now more than ever, for the

farm or your life, if you cannot get it on your Farmlands or CRT Cards,

you probably don’t need it.

Mike McLeodGeneral Manager Card (South Island)

Roger TeagueGeneral Manager Card (North Island)

”

“


switching to Farmlands billing with

their Telecom account and they now

enjoy a 4 percent rebate on their

Telecom bill. Several major retail chains

have extended acceptance of our cards

into both islands.

Currently the team is in a negotiations

phase with Card Partners. It is our

objective to deliver more rebates than

ever before and to make these visible on

shareholders’ statements. We will bring

new technology to shareholders, with

phone applications like the Card Partners

Directory App due for release prior

to Christmas. Fuel price notifications,

allowing shareholders to take advantage

of the best possible price in their region,

is due out in November.

With regards to card fuel, in August

the merger delivered a more than 35

percent increase in rebates at service

stations, due to historical volumes

purchased by shareholders.

The ongoing relationship with our

Card Partners has been of great value

in the transition period after merger, with

many immediately accepting both

co-operative cards without hesitation.

This ensures shareholders receive a

positive experience, while we amalgamate

the Card Partners and the processing of

their five million transactions annually.

With more than 5000 partners, we are

determined to deliver the best possible

rebate to our shareholders. This is a

gradual process as there are many

variables, so during the next few months

you will see marketing of new offers from

Card Partners.

With more than 5000 partners, we are determined to deliver the best

possible rebate to our shareholders.

During the second quarter of 2014,

we will move to one single card, with a

reissue of more than 50,000 cards. Further

engagement with partners is also required to

make the transition as smooth as possible.

Energy is a significant cost to

shareholders. From October, Farmlands

has increased the Meridian Energy rebate

with a bonus 1 percent. This will add more

than $1 million to shareholder’s pockets in

the year ahead.

”“

You’ll find Farmlands stores

throughout New Zealand.

Call in and talk to one of our

friendly team members,

call 0800 278 583 or visit

www.farmlands.co.nz for all your

farming requirements.

Call in and see us!

Farmlands Christchurch Office

23 Sir William Pickering Drive,

Christchurch 8053.

Farmlands Hastings Office

1010 Southampton Street,

Hastings 4120.

Farmlands Dunedin Office

84 Cumberland Street,

Dunedin 9016.

NELSON 03 543 9450

TEMUKA03 688 6655

TIMARU03 687 9459

DUNEDIN03 477 9040

BLENHEIM 03 579 3150

MOSSBURN03 248 4040

INVERCARGILL03 211 1955

WINTON03 236 6166

HOKITIKA03 756 9069

MOTUEKA03 528 1100

CULVERDEN 03 315 8692

AMBERLEY03 314 8340

RANGIORA03 313 2299

DARFIELD03 318 7610

CHRISTCHURCH03 344 4045

LEESTON03 324 8022

ASHBURTON03 307 9140

OAMARU03 433 1030

WAIMATE03 689 8862

RANFURLY03 444 1060

WESTPORT03 788 8340

WHATAROA03 756 1040

TAPANUI03 203 0130

KAIKOURA03 319 5448

GREYMOUTH03 768 5743

OTAUTAU03 225 8398

GORE03 203 9510

FAIRLIE03 685 8586

KUROW03 436 0917

ALEXANDRA03 440 2030

BALCLUTHA03 418 3322

WINTONFeed Mill

ROLLESTON Feed Mill

DUNEDIN Grain & Seed

YALDHURSTFeedbarn

WAIPAPA(09) 407 6953

GISBORNE(06) 868 8804

WAIROA(06) 838 7209

WAIPUKURAU(06) 858 8336

DANNEVIRKE(06) 374 8593

FEILDING(06) 323 0500

PALMERSTON NORTH(06) 357 4786

MATAMATA(07) 881 9120

TAUMARUNUI(07) 896 0052

TE KUITI(07) 878 3591

PAEROA(07) 862 6693

HAUTAPU(07) 827 4206

STRATFORD(06) 765 0020

HAWERA(06) 278 9031

NEW PLYMOUTH(06) 755 1427

WANGANUI(06) 349 1240

MARTON(06) 327 7149

LEVIN(06) 367 2103

OTAKI(06) 364 9079

TOKOROA(07) 886 7557

TE AWAMUTU(07) 872 0230

HAMILTON(07) 847 8057

PUKEKOHE(09) 238 8853

MORRINSVILLE(07) 889 8079

DARGAVILLE(09) 439 7693

KAITAIA(09) 408 4031

WHANGAREI(09) 438 8824

TE PUNA(07) 552 5072

TAURANGA(07) 578 4049

TE PUKE(07) 573 7216

ROTORUA(07) 348 9076

WHAKATANE(07) 306 0187

OPOTIKI(07) 315 3008

TAUPO(07) 378 2503

NAPIER(06) 833 5690

WHAKATU(06) 876 8029

TAIHAPE(06) 388 0532

HASTINGS(06) 873 8180

PAHIATUA(06) 376 7922

MASTERTON(06) 377 1017

GREYTOWN(06) 304 8045

KAMO(09) 435 5037

OPUNAKE(06) 761 8773

PUTARURU(07) 883 7964

HELENSVILLE(09) 420 8307

HUNTLY(07) 828 7102

INGLEWOOD(06) 756 8501

WELLSFORD(09) 423 7957


farmlands annual report 2013

Documents